Sales tax revenue

Economy

Sales tax revenue

steady

What does this measure?

The amount raised for local governments and schools from sales tax, adjusted for inflation.

Why is this important?

Rising sales tax revenues can indicate a booming local retail economy, and may also be an indication that counties have increased their sales tax rates in order to generate more revenue for local services.

How is our region performing?

In fiscal year 2015, the region collected $348 million in sales tax revenues for local governments, up 11% from 2001. Knox County collected by far the most revenue, at $165 million in 2015, though that was down 1% since 2001. Sevier collected the next largest amount at $82 million, up 36% since 2001. Along with Sevier, the other counties with large increases from 2001 to 2015 were Blount (26%) and Jefferson (24%).

Notes about the data

The state sales tax is 7% on sales, and counties and municipalities may levy an additional amount up to 2.75%. By law, a minimum of 50% of the revenue must be sent to local public schools. Knox County directs 75% of local sales tax revenue to schools. Figures are adjusted for inflation to 2014 dollars.